More creditors to join KCM winding up petition

MORE creditors of Konkola Copper Mines (KCM) have applied to join the winding up petition of the mining rm saying that they intend to support the winding up proceedings at the hearing.

Barloworld Equipment Limited, Boss Mining Limited, a rm based in the Democratic Republic of Congo, Tripump limited and Kaltire Limited led notices to appear at the hearing of the petition stating that they were creditors and would like to support it.

In this matter ZCCM-IH has petitioned the Lusaka High Court to windup KCM claiming that it was being managed in a manner detriment to its interest.

Lusaka lawyer Milingo Lungu has been appointed as KCM provisional liquidator.

According to a separate notice led

in the Lusaka High Court, the creditors claimed that they were owed millions of dollars.

"Kaltire Limited of Plot number 3628, Natwange Road, Light Industrial area in Kitwe, a creditor for US$232,050.69. Boss Mining SAS of 238, Route Likati, Commune Annexed, Province Haut, Katanga in Congo DRC, a creditor for US$4,665,389.22.

“Tri-Pump Mining Limited of plot 5032, Mutentemuko road, Heavy Industrial area, Kitwe a creditor for US$24,176.61, South African rand ZAR8,155.61 and K1,671,533.35 and Barloworld of plot number 16920 Mungwi toad, Industrial area, a creditor for US2,683,868.30, intend to appear on the hearing of the petition to support it,” read the notices.

Meanwhile, KCM Chief Executive O cer Mavuto Chipata stated in an a davit in opposition to Vedanta's application to stay proceedings pending appeal that the appeal had no prospects of success and that there were no proper reasons to stay proceedings.

Earlier, Vedanta Resources Holdings as the majority shareholder of KCM applied to have the winding up proceedings referred to arbitration but the court refused.

And now Vedanta is seeking leave to appeal and halt proceedings pending appeal. In opposition, KCM said there was no critical issue to be determined on appeal. KCM also stated that the contributor (Vedanta) had argued that since the majority of KCM's board of directors do not believe that there is a basis for the winding up petition, this in itself raises a critical issue as who should defend the interest of KCM.

KCM stated that the record showed that in this case, there was a provisional liquidator appointed by the court and thus, getting rid of the powers of the board of directors.